It costs $15 to buy a cup of coffee with Bitcoin… plus the cost of the cup of coffee, by Philip Greenspun.
“It costs at least $15 to get a transaction recorded by the miners,” [a Bitcoin expert] said.
What if you don’t pay that much? “Your transaction will languish out there for a few days before finally dying. If you want it to settle within a few minutes you have to pay $15.” …
Does this make Bitcoin useless? “Think of it as a store of value, like gold bars in a vault,” he said. “It is not a replacement for a credit card.” So it is a digital Fort Knox, but it doesn’t hold anything other than numbers (and, of course, there is no way to lose by investing in Bitcoin because they’re not making any more numbers).
This guy has a couple of businesses centered around Bitcoin trading, etc. But he also bought a small quantity of Bitcoin back in 2010. How did that work out over the past seven years? He sought out my advice regarding which turbine-powered helicopter to buy for family weekend trips. (I recommended a used AStar for $1.5 million.)
[Should you dive in and buy? He thinks the price will fall in the short run, but eventually go to $100,000 to $300,000 per coin.]
Store of value? Like gold? Hardly. It is insecure and hackable, only exists in computers, and it is forever lost if you lose your password.
But that’s the point of Bitcoin. Unlike gold, it can be transferred from person to person over the Internet.